• Supply chain structure varies per product segment and raw material streams
  • Sika manages the supplier base using also social and environmental criteria

Sika's supply chain varies depending on the business segment. The local Sika companies source raw materials both locally and internationally. Some materials are only available from international suppliers and have to be imported into the country of production. Sand and cement for mortars is mainly sourced in the producing country, additives are usually sourced from multinational companies. Admixture raw materials are sourced either locally or from multinational companies. Proprietary admixture ingredients are produced in specialized factories and distributed to other Sika production sites. Raw materials for adhesives and sealants are sourced from multinational companies. Polymeric plastic raw materials are sourced from multinational companies or large local vendors.

In Sika factories, the raw materials are converted into higher value goods, usually through mixing, blending, compounding, and suitable form-giving. From Sika’s finished goods warehouses, products are distributed within the respective country and partly exported. Sika today collaborates with approximately 12,000 direct material suppliers, suppliers from over 16,000 supply locations, for both local and global sourcing. The company strives to work together with local suppliers wherever possible, to reduce lead time, risk, and transport, as well as to increase availability and control quality. Sika’s purchasing spend for direct materials corresponds to 45% of total net sales and is comprised of direct materials, indirect materials and services. The total global spend for direct materials and trading goods amounts to over CHF 3,000 million at average exchange rates for the year 2018. The regional split for direct materials is as follows: EMEA 50%, Asia/Pacific 18%, Americas 25%, and Automotive 7%.

Sika's diverse customer base includes local construction craftsmen, larger construction companies and very large multinationals, e.g. cement companies, as well as mainly large automotive, transportation and appliance manufacturing companies.

Sika employs a risk management approach for suppliers and the supply chain of raw materials. This approach is described in this report under 102-11.